a dark fiscal cliff. a new government report warning is an increase in texa taxes wod crush the middle-class spending. the dow down 70 points. it seems republicans are changing their tune on taxes. i don't know. lou dobbs with us as more congressional leaders break from the antitax pledge. and two years after the signs in cairo they look the same. mohamed morsi moves for absolute power sparking violent clashes in the streets between his supporters and opponents. but first, it is time to check stocks as would every 15 minutes, let's head to the floor of the new york stock exchange. nicole, the market is down and out on the fiscal cliff. i'm afraid. nicole: there's a lot going on on wall street. selling across the board, down

72-point at the lowest .12900, so about 40 points off of the earlier lows, however we are seeing selling from sector to sector with its banks or drugs or retail. the areas that have been pretty good our technology, semi conductors holding on, utilities giving it a go after selling off on concerns of the fiscal cliff of his utilities is a group that paid high dividends and that would be taxed heavily, however they are also viewed as a safe haven, that is why you see investments they are. after a winning week last week. the dow component mcdonald's downgraded today to neutral from a buy. mcdonald's selling off, and those are some of the top stories on wall street. the dollar has been a little bit stronger. back to you. melissa: and it is cyber monday today, analysts are expecting you and other cyber shoppers to shell out $1.5 billion online

this year. adam shapiro has more. adam, do you see the toys i bought yesterday, are they on their way? >> there is a good bet if you bought from amazon.com and your packages will be coming through this fulfillment center. after the store owners and the pickers get it into the system, it will wind up in this section of the facility. come with me, want to show melissa something. you bought some toys and some gifts for the holidays, but cyber monday when you talk about the revenue, for amazon.com, 1.5 billion total cyber sales today will be $1.522 billion. they are luring in. a big panic.

$999.99, crazy eddie couldn't beat that back in the day. you have your kindle. the canon camera usually with all of the bag and the lenses will be 1500. this is for your kids. i want to show this to you. we were showing folks this earlier. this is monster move mickey. once it gets going, you understand why amazon.com is selling this fisher-price toys expecting roughly 60 to 30% increase in revenue in the fourth quarter. anywhere from 20 to 23 billion in shares in the fourth quarter. versus what they had last year. this make a big impact. i knew you would love it. you need to order something else. melissa: i definitely need one of those in the year that tickle me elmo has taken on a whole

different meaning. thank you so much. >> this is the tickle me all of the era. melissa: it is. it is time for cyber monday spending as it is estimated spending up 21.4% from last ye year. it is great news for retailers, but what happened after the cyber spending bonanza? joining me now with what we can expect to see from now until christmas. welcome to the show first fall, those numbers were staggering. 1.5 billion for online shopping, but i was wondering how much of that would be cannibalized away from retail. retail is still a much larger number for the brick-and-mortar going to the stars. like $60 billion, right? >> that is right. they said there was probably close to $59 billion being spent over the entire black friday

weekend. online is still less than 15% of the total spend. while it is growing really rapidly and it will eventually cannibalized more and more, visit online trend that will continue. brick and mortar still matter. there was a shift to the midnight hours and unfortunately kind of into the late hours of thanksgiving day. there will be a lull, and there always is in the first couple of weeks. 32 days of holiday spending versus 30, people like to wait. they think waiting will give them a better deal. melissa: is that true? lot of people tried to debunk that saying you will get better deals earlier in the season. what is the truth? >> the truth is you have to look at the inventory. the inventory is very clean. last year i would have said yes, you should wait and you can wait

until the two weekends before and you'll get a better deal. i don't think that'll be the case with hot items this year. you want something, it will be sold out by the time you get to it in a couple of weeks. very different from last year. melissa: do you think this last weekend is a harbinger of what is to come? and if so, what does that tell you? >> sometimes it will teeter out. because the inventory is so clean and because the promotion is essentially flat, they may look very deep, but generally people are flas flat on those promotions. it is a defensive holiday season. last year 5.6, it is still positive. i think it will be up 3%, 4%, so that is very healthy.

melissa: it is so tough to understand. >> what i would say is those of the upper income level probably a little bit more comfortable, perhaps the past couple of years they have not spent the full capacity of the ability to spend. missing the upper income levels luxury, higher-end, as well as the affordable luxuries, little bit more spending happening. melissa: using the increase is driven at people who have the most money? we are about to raise taxes on them. >> so long as we don't know what is happening. there is this notion of there is a big fashion trend. never underestimate the female needed to buy or update the wardrobe. melissa: interesting. it may kill christmas.

kind of my take away, but it does not matter. thank you for joining us. an update on a story charlie gasparino told you about more than a month ago. as the chairman mary shapiro has made it official calling it quits after nearly four years in office. shapiro became chairman in the wake of the financial crisis in january 2009 is the first major departure for president obama's team of financial regulators. the sec has taken a beating in recent years accused of lacked oversight. there was the bernie madoff ponzi scheme scandal. president obama announced walter will replace shapiro. appointed to the sec by george w. bush in 2008, has worked in the cftc. talks of the fiscal cliff trudging along, president obama and house speaker john boehner talking on the phone saturday.

are we any closer to a deal? and it is a bird, it is a plane. nope. it is your social security number, it turns out more than just balloons in the sky at this year's macy's thanksgiving day parade. the crazy details of this one just ahead. can i help you?

i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spot? [ male announcer ] break from the holiday stress. save on ground shipping at fedex office. ♪ [ male announcer ] they are a glowing example of what it means to be the best. and at this special time of year, they shine even brighter. come to the winter event and get the mercedes-benz you've always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho! [ male announcer lease a 2013 glk350 for $399 a month at your local mercedes-benz dealer.

melissa: so, talk about raining on your parade, literally. thousands of pieces of confetti rained down on the macy's thanksgiving day parade. but get this, the confetti contained confidential information disclosing bank details, social security numbers, even information about mitt romney's motorcade. the documents originated the nassau county police department, and an investigation is currently underway about exactly how this happened. as with every 15 minutes, let's check the market. net capital up almost 10% today. nicole: and gaining even more.

we're looking at, don't have live pictures, i think up about 15% a moment ago but looking at knight capital earlier today, the "wall street journal" had been reporting that knight capital may be shopping itself around. other high trading market makers on the floor of the new york stock exchange looking at the market making unit of knight capital unit. by the way, the market making unit is the most profitable ballpark. there has been for the report that the whole knight capital could be sold, so with that we are seeing the stock accelerating to the upside. many people remember when we spoke so much about knight capital in early august when implemented software, they launched the new software, the old software, there was a trading glitch and they had to take a big loss on that. causing chaos on wall street. they have recovered since then, but they have been in the headlines.

now today we continue to follow the story about who wants knight capital? a lot of talk of sales. back to you. melissa: interesting, nicole, thank you very much. the patent war between apple and samsung continue to heat up during more allegations. shibani joshi has all the details. welcome back. >> i am happy to be back. stepping away from two crying children makes it easier to come back to work now. well, let's talk about technology and what the latest is brewing between apple as well as samsung because this battle continues to get hotter and more expensive as the days and the weeks go along. upping the ante over the weekend is apple adding six more products to the patent lawsuit against samsung. you can see the products being included in this lawsuit.

including the flagship galaxy as three products, the galaxy note. this comes days after samsung did the exact same thing to apple. apple just unveiled their new phones and ipad. they're trying to refresh the lawsuit claims to involve the newest products each of these companies have. as far as what is going to happen from here, we still have a few more months before we see anything in the court on december 6, important date we should all remember because that is the date we will have a hearing where samsung will appear the billion dollars damage decision that came out in august so we can expect some headlines coming out of that. and march 14 is when the patent infringement trial actually begin this, so what they're doing is mounting up their arsenal ahead of the march date.

expect a lot more dollars signs to be added up before all of this goes through. melissa: thank you so much. with the fiscal cliff approaching, the possible impact on you in your 401(k) ahead. i look at how dollar is faring as we head out to break. you can see the dollar is stronger against the euro and the pound. we will be right back.

nicole: 21 minutes past the hour, this is your fox news does. the supreme court reviving liberty university to obamacare. they argue the law mandates that employers purchase of insurance is unconstitutional. it'll be reheard. they been any outcome, the supreme court can eventually choose to hear the case. michael bloomberg released in the request for federal aid for recovery following super storm sandy's devastation.

they estimate the total to the $19 billion in losses with the net cost to repair the damage south of $10 billion. u.s. immigration and customs enforcement teaming up to announce the seizure of 132 internet domain names accused of selling counterfeit merchandise. according to an icd press release, the websites are set up to do customers into unknowingly buby counterfeit goods this holiday season. those are your headlines, now back to melissa. melissa: thank you so much. as the fiscal cliff looms, one area that could be getting hit is your retirement savings. peter barnes is in washington, d.c., with more on this. why are you focusing on this part of the pie? >> it is one of the biggest tax breaks out there, melissa. budget negotiators talking about trimming all kind of tax deductions as part of the fiscal cliff, and some of these are pretty big ones.

but get this, now some researchers argue that may not make a difference on the overall retirement savings which could give new ammo. $61 billion for 401(k) and similar, 46 for regular company pension plan, $16 billion for other retirement plans, 12 bouillon dollars for ira. researchers use retirement savings data from denmark to study the impact of these kind of breaks. retirement plans resemble ours. researchers found the danish tax break increase retirement savings but for every dollar workers put in with government incentives, they reduced their outside savings by almost the same amount. workers increased total savings overall by just a penny. but the researchers found some things help people save more for

retirement, for example automatic enrollment of workers in the 401(k) type plans. melissa: peter barnes. i have a lot of comments about that, but we don't have time. thank you so much for that. do we have breaking news? we will not do that right now. the country continues to creep closer toward the edge, john boehner spoke by phone as lawmakers try to work on a deal to avoid the fiscal cliff. joining us now, chief economist at first trust advisors. you heard all that information that came before you, give us a response. i am sure you were chomping at the bit, weren't you? >> exactly. one thing is all the taxes eventually get paid. you don't get away with not paying taxes just because you put money into an ira.

you have to pay when you pull it out of retirement. the second thing is there is no doubt today people can lower their tax bill, it will be definitely lower the savings rate if we were to do that. and finally, $100 billion is what we could raise. that is a drop in the bucket. a trillion plus dollars deficit. we need way more than these kind of things to fix this. we need to cut spending. that is what we need to do. this is the only way we will balance the budget. melissa: you make a point not everyone has made, just the impact of the stock market of what is going on. raising taxes on investment doesn't even hurt as much as just how much government spending is going on.

>> i will try. this is the heart of economics. call it the cloud or the smart phone or the tablet, those technologies to throw out productivity efficiency. and the games society makes from these technologies, we get reinvested, sort of the savings we had from using a tractor on the farm, so the price of food goes down, the resources get redirected into something new like inventing an automobile, if the government steps in and spends that money, takes it away, taxes it and spends it, we don't get the full benefit of the technologies that we are inventing. that is why we have a percent unemployment rate, growing 2% today. if we had a smaller government, we should be growing faster and have more jobs and lower unemployment. melissa: we're talking about who will get a bite taken out of

their slice of pie. it is very frustrating. >> the only tax they could come up with in washington that could even come close to paying for the deficit today would be the value-added tax. that tax will hit the middle class. that is the one that is in the middle class. melissa: so much for promises, the latest on the growing number of congressional leaders quitting grover norquist long-standing pledge not to raise taxes. lou dobbs on that just ahead.

melissa: time for stocks let's head to new york stock exchange with nicole petallides. the educational books sale? >> mcgraw-hill has the apparel. busy trading this morning indicated it resumed and the action on wall street is up

1.6% agreed to sell the education unit to apollo global management. worth 2.5 billion dollars. people on the inside have been about this it has taken one year but now finally moving forward. melissa: several leading republicans hitting the talk-show saying they would consider violating the anti-tax pledge as part of the fiscal cliff deal and? we chambliss has argued grover norquist has no plan to pay down the that. >> i will violate the pledge for the good of the country only if democrats and do entitlement reform really pledge to avoid the grief.

melissa: but grover norquist fired back today. >> for the last 20 years they have kept the pledge and however that and the tax issue are very, very powerful. >> they will keep it again? >> so does it still hold weight to? lou dobbs is year. >> he says it is very, very powerful and at that he did not say it was powerfully relevant. it seems the republican party should pay attention. the sunday talk show host the content and guest does not materialize. it is an agenda for those talk-show host to pursue the attack is laughable because

it is the add-on of organizing four obama. this is silly and grover norquist is engaging and they play their parts in their farce. the choice that has to be made in our current political system, the choice is the politicians will be honest to acknowledge the government cannot continue to grow, it cannot maintain its current size or meet its obligations. but if we include the state and county and local governments of unfunded liabilities just to the public employees. melissa: we just had an election. people do not believe that.

lou: i do not understand. the election was not about unfunded liabilities. melissa: fundamentally about the size of government and people voted bigger. lou: i must have missed that. the republican party has grown government and assume advisers to government -- governor romney were the same as president bush. melissa: is seen as the boat to four obama was bigger government. lou: and the vote for mitt romney? i am saying the intellectual integrity of the moment acknowledging it is the size of government if we can't sustain them and the social safety net programs in perpetuity when we're trillions of dollars in debt

and for doing so. melissa: how do drive that message home? nobody is getting it. >> a lot of people are. but they're not being honest. there in the democratic party and if they continue to refuse what is reality, and then a cliff is a small thing and embedded for decades. it is not a pleasant experience. melissa: i am not excited. [laughter] i hear you. melissa:. lou: people have to be honest. melissa: also watch him tonight tonight catch hoover institute senior fellow to talk about unrest in the

middle east. lou: one of the wisest minds of geopolitics and her in the world. melissa: protest in the streets of cairo over the new power grab. look at the treasury's. the yield is dropping three basis points.nve or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.

>> with your fox business brief it is a down day for the market. 65 points down current day. with the most lucrative insider trading scheme with $5 trillion -- $5 million bail allegedly giving confidential information for the alzheimer's drug from

the university of michigan neurology professor. the white house released a new figure consumer spending maybe impacted if congress passes tax cuts on those making less than two madrid $50,000. according to economic appraisers failing to pass the amt could cut spending by 1.7% next year. this is the latest from fox business, giving you the power to prosper.

melissa: will climb did to the third consecutive week of gains but is showing signs of falling down but natural guest plummets as well? >> we were so right -- surrounded by a meat traders but the

headline would get the intraday, with the forecast from the commodity whether group. you can see the contract fell off the table. look at three months it has been picking up with natural gas with the prospects of colder than normal but it will be a lot warmer according to the forecasters. look at heating oil. it will not be quite is warm. a couple of refineries back on line phillips 66 will be back on line as of today. it has not since the superstar sending futures down. gasoline will be cheaper. melissa: protest continuing

in cairo as the egyptian court said earlier today it would hear a challenge to president morsi recent decree of power joining us now is k.t. mcfarland. this has exploded again? >> it will continue. why? morsi the muslim brotherhood is the new dictator. we got rid of mubarak, pro-american not great but pro-american and now we have a new dictator and he is not pro american he is anti-israeli and from the muslim brotherhood the movement carrying on hamas is on the gaza strip they have egypt governed by the muslim brotherhood uc political instability in jordan. my guess they are the next to fall. 18 months ago the middle

east was stable now today it is not an anti-american and it will only get worse. melissa: 18 months ago was pro-american and? >> yes. there was the agreement with israel, mubarak was an ally of the united states, a cut off aid not good to his own people but cooperated with us with the war on terror. all of the ingredients were there 18 months ago they are still there but 75% of the population is under the age of 30. they don't have jobs and the prospects. they toppled their dictator but things have not got better so they are back on the streets. >> did we misinterpret what the appraise saying was about?

arab sprained, fighting for there rights when it was about religion? >> more about economic prospects. revolutions happen with a large baby-boom population. american revolution. chinese revolution, french revolution. even eastern europe and the soviet union. with a population bubble when you add economic disaster with good prospects down the road people take to the streets the economy in egypt has not gotten better. >> then to have the right course of the track them to replace with another dictator. >> that has not because of

political stability. they are getting their money out with business opportunities and prospects so people are back in the street. they don't get $1.5 billion per month then they don't have food. melissa: k.t. mcfarland. let's check the market with nicole petallides at new york stock exchange. facebook is called to outperform over the next year? >> we have seen facebook get pummeled from the ipo at $38 and is sold off but the last three months have been looking better it is up over 8% but the one that you talk about they are somewhat

bearish saying it will outperform the s&p and lot of people underestimating the revenue growth over 10 or two years. a positive note for facebook. melissa: the park ridge in a bare tree will cost you more the hold gift list would be $107,000.61% increase over last year but not everything cost more out of the 300 and 64 items the partridge is the least expensive at $15. the swans are the most expensive at $1,000 a pop. who do? you need is seven of them. charles payne is up next.

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melissa: black friday weekend sales jumped 30% of last year but major retail stocks are falling today. sandra smith has the latest. >> what the nasdaq turning positive. the leaders include

retailers e-bay is up 5% also urban outfitters. some are helping to boost the nasdaq into positive territory. even with the better than expected numbers it is slower growth from a year before. some of the most successful retailers combine the on-line experience macy's is applauded and target and sears. analysts cheer their willingness to open on thanksgiving. cesar's stocks performing on of broader market for amazon.com the clear winner over $1 billion of online sales of black friday. the most visited retail site we will see with cyber

monday and j.c. penney panned again for not opening their doors on thanksgiving. reaching the lowest level of the year abercrombie and fitch one of the winners. melissa: a great segue. of his time to make money with charles payne. he has some fashion picks. >> start with abercrombie. this obviously has been a huge winner. the chase the stock? why was up? earlier u.s. sales were down but international sales jumped 37% director consumer and they have stores in germany, spain, france, they 're not spending money in

those countries but starting to expand. the p/e of 13 0.nine so for the most by ration metrics it is a cheap stock. >> this may give you comfort may of last year it was $76 so people of the three year chart i would chase it if i am a traitor another stock decker's if the rumor mill everybody jumps on the bandwagon. there may be some of those of. melissa: it is all

speculation? >> there is some winter and lower sheepskin prices i can see a p/e firms looking -- flicking their chops 27 breaking news fox business confirms a list of ceos that will meet house g.o.p. leaders on wednesday morning to discuss the fiscal cliff. lloyd blankfine, the chairman and ceo of honeywell international, the chairman and ceo of at nine also the president and ceo of all state. interesting. from candy bars to caviar beverly hills caviar has brought luxury food to break by preissing the touchscreen

caviar vending machine. do you stand there to say which there was a vending machine to give me caviar? also troubles, as cargo prices between 50 and $500 they sprung up in moscow but it is not the only vending machine from sprinkle cupcakes to marijuana up. the institute for the study of four discusses president morsi power grab in a dangerous tension added to the middle east. that is to night. what will it take to get a deal on a fiscal cliff? don't miss it.

stocks try to climb back from session lows on news about the fiscal cliff. is it profit taking from the best week in five months were a sign of more selling to come? we will find out. and with five weeks until the cliff, both parties are still really far apart on taxes and entitlement reform. a new ruling read slate into another constitutional challenge to the individual mandate. he tells with elizabeth macdonald on that story. we go down to nicole petallides on the new york stock exchange. we started a little bit lower. not really fun at the holiday week.

nicole: we're about 30 points off of the earlier lows of the day. most have been in the red all day long going sector to sector. the dow down over half of 1%. however, we have seen four straight weeks of selling. we're up over 400 points. there are still concerns about the fiscal cliff, which he noted. united health care, one of the big losers on the dow missing analyst expectations, so it has come under some pressure. also looking at mcdonald's, which is now coming under some pressure after an analyst downgrade where they cut it from a neutral to a buy.

that is another name that has been weighing on the dow. tracy: thank you, nicole. in case you missed the mad dash of deals on black friday, don't worry, today is cyber monday. retailers are competing hard for your cyber dollars. adam shapiro at the fulfillment center in phoenix, arizona, with more. i think that is so cool where you are. >> there are 50,000 seasonal employees, 20,000 full-time employees worldwide getting your orders. the guy behind me is part of a series of different lines where boxes are being packed with items you order. this part of it being automated. we're talking about a process that is going to generate revenue for amazon anywhere in the fourth quarter from 20 to

$23 billion. i want you to meet larry wolter, he started as a seasonal employee, worked his way up to aiarea manager. i want to talk you well the photographer shows the process. speak what is different about this cyber monday compared to others, not a lot. we are shipping a lot of units. make sure everybody's getting the things that they order. >> i understand it is a little bit later because you opened another facility. this is the largest of the 40 in the continental united states. >> we experience a little bit, but the orders are coming in today, we're doing everything we can to keep up. >> last year was 204 orders per second. do you think you will surpass that today? >> absolutely.

making sure everybody's getting exactly what they want as quickly as possible. >> these machines highly automated, is there a lot of pressure to keep them running? >> every package we see passing by on th a conveyor, it is somebody's christmas present. we want to make sure it gets there as quickly as possible. focusing on keeping the machines running. >> how many boxes is it packing an hour? >> a lot. this machine should be running full-time, shipping a lot of units today. >> thank you for joining us. you have a merry christmas or happy hanukkah, whatever it is you celebrate. i will throw it back to you, this is the kind of thing going on nationwide. people ordering online, you mentioned 1.5 to $2 billion today according to the national federation of retail online

sales approaching 100 billion. it is a lot. tracy: good thing my kids are in school. santa happens to be amazon.com late-night when i can't get to the store. don't tell them. thank you, adam. our very own charlie gasparino called this 18 months ago. they made it official by announcing merry shapiro is stepping down after four years in office. she can chime in the wake of the financial crisis in 2009, the first major departure from president obama's team of finance related. the s&p is taking a beating in recent years accused of lack of oversight of the class of lehman brothers and the bernie madoff ponzi scheme. appointed by president george w. bush in 2008.

all right. let's talk about what is going on with the markets now. the holiday shopping season fading fast on wall street because of the fiscal cliff. it is not just about taxes. corporate earnings are at risk. joining us now, senior vice president. bob, we have known this was going on. why now? everybody has known we would be dangling down. >> the market always trades on expectations, but the truth of the matter is we have an increasing the second half of this year getting a chance this is a leap of faith rally because what the market doesn't realize is corporate earnings for the s&p 500 have been stuck at 25.50 per share since the second quarter 2011. trading flat from a year ago comparison have been favorable. now you're coming to where we

will end this year around 35, 50, but next year expected to get up to $30 per share by 2013. at a time the bullish expectations on the market driving prices higher, but the looming fiscal cliff. what will it do to the economy, tipping it over. flat earnings growth. tracy: that comes back to the consumer, and the consumer being nervous, that is how the bottom line is affected. >> it is partially the consumer. this has been a subpar recovery. the consumer has done more than their fair share, growing activity at a healthy pace. there are issues that give you pause for next year. most of which on the fiscal

cliff, also have how is the financial sector going to respond? more bank lending next year or less given the uncertainty? tracy: a lot coming down the pike. dodd-frank, uncertainty in texas. nicole petallides mentioned it, still incomplete disarray. said i will do whatever it takes, still can't seem to get a deal out of there, can we? >> europe is in a recession. thewe will do everything in ther power and has come up with their own version of quantitative easing. bernanke has done qe3, so do everything they can to underpin growth, but bernanke himself has admitted his tools are basically powerless if we go over the cliff. tracy: everybody wants the cliff solved. what is the one thing you would like to see in order to help the market in 2013?

>> decision-makers in washington have to be very careful because you can have the consequences of inaction, which has been proposed by number of business leaders which means we get more of the same, more uncertainty, decision-makers don't go out and hire more employees, or alternative is maybe too much in the damaged disposable income. another secret of this recovery has been disposable income growth has gone nowhere since the start of 2007 if you can increase taxes on any portion of the economy, could damaged disposable income if the consumption goes down. tracy: s&p capital, thank you for being here. we have much more to: all of this including a newly revived challenge to the health care law. is it heading back to the supreme court? liz macdonald is on that,

thankfully. and demanding the president take action on the keystone pipeline. he is our special guest ahead. and of course you will address the fiscal cliff. as we do every day at this time of day, let's take a look at how oil is trading down slightly. we will be right back.

>> it is time to make some money with charles payne. he is here to help us make some money off the rail. first a little bit of a follow-up, something we were talking about last week, right? charles: i said one of these plays, reporting it could be end up bid or down bid. typically i will do that with the higher risk guys. you don't sell it yet. i don't have the companies going out of this, it is an overreaction. i woull not add to it at this moment. tracy: zale jewelry store, men who are last-minute shoppers will run out and buy season jewelry, so i still think you have time. charles: and i am one of those men. in the meantime i will go a littllittlebit more conservativs idea. a railroad play.

tracy: are less conservative play on this show, by the way. >> i am like keep rolling it, baby. it is a railroad in mexico and panama. the mexican economy, it acts fantastic. this is my favorite rail for a year and i continue to like it. this is like a 401(k) plan. a long-term investment. i don't know why there's so much volume in it, happen to love this stock. there'there is a new panama canl opening. they are positioned better. tracy: that to be charles payne last pic. love you, charles.

we have to check on the market as we do every 15 minutes. nicole petallides on the floor of the exchange. talking some of financial names. nicole: let's take a look at knight capital, a name that has gotten a lot of headlines this year, particularly back in august when there was a trading glitch. today the headlines are surrounding knight capital. and whether virtue financial, others perhaps maybe by the market. and there was talks maybe the whole firm of knight capital was available. all this chatter is enough to boost the stock dramatically. up nearly 18% today. great move there. when you take a look at barclays coming under fire by some shareholders, maybe barclays should spin off or break up the

bank, so with that kind of chatter from the chair holders we have seen barclays coming under pressure down about 5%. back to you. tracy: thank you, nicole. it is amazing what chatter can do. it is like when kids play telephone. the dow down 66 points. coming up, republicans meeting with several ceos on the fiscal cliff. we will have the latest on where things stand. republican senator john barrasso will weigh in from capitol hill. more as we head out to break, the dollar is down against just about everything except the japanese yen, which is up. the dollar down against all of it. we will be back.

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across egypt opposing the move. one demonstrator killed so far for another 40 injured. morsi saying his optimistic egyptians will overcome the political crisis, this as cairo administrator said a descendent december 4 hearing. and the defense minister stepping down from politics. making the announcement today shaking out the system weeks ahead of the general election. former general and one-time prime minister says he would stay at his post until a new government is formed after the january 22 elections. those are your headlines, back to tracy. tracy: thank you very much. we have more on the breaking thg news we told you about the last half hour. fox business is the first report several ceos are meeting with the republican house leaders on wednesday and our very own rich edson in d.c. with all the details. making the trip back down there

again. >> they are. ceos from caterpillar, goldman sachs, allstate, honeywell will meet with house republican leadership wednesday morning to discuss the fiscal cliff. also attending, the former cochair of the debt commission. also, president obama speak with john boehner this weekend at an attempt to restore momentum to the slow-moving negotiations. congressional and white house staff still in negotiations preparing for the next meeting between top democrats and republicans will congressional aides say the administration has not yet extended another invitation for high-level talks at the white house. sources close to these the negotiations confirmed treasury secretary tim geithner is taking a leave for the administration on these talks. saying simply closing tax loopholes fails to raise enough additional revenue putting him and other democrats at odds with republicans. republicans are standing firm against a rate increase is saying the only way to raise tax

revenue is through closing loopholes and curbing deductions. entitlement and spending cuts must be a part of that. >> you could put taxes at 100% on the wealthy and not solve the problem in the spending. we have got to get the problem and stopped digging a hole spending money we don't have. >> lawmakers are returning to washington after what will likely be their last break until they figure out the fiscal cliff or don't figure it out. back to you. tracy: we have to wake up and get this over with. rich edson down in d.c., thank you, sir. the "wall street journal" reported president obama will also meet with ceos on wednesday. the names of those ceos have not been released yet. so we have more and more republicans hinting they may be ready to budge on tax increases in order to avoid the fiscal cliff. if the tide turning on capitol hill? joining us with more on all this, the senator of wyoming.

senator, thank you for taking the time to be with us. lots of news today about how many republicans who have one sign grover norquist vote for no tax increases now kind of turning on the tide to little. you never signed that petition, that pledge. how come? >> i do believe the solution is to not raise taxes, but rather to cut spending. that is really what would be the courageous political act to say we cannot continue to spend money in this country the way we have. people believe if taxes are raised, what will happen if the government will spend more money. they will not use it to pay off the debt or to lower the deficit. tracy: you sponsored to cut the balanced approach. we're not even hearing much talk about that, are we? talking raising taxes, not hearing anything about entitlements.

how come? >> i was one of the cosponsors involving balancing the budget. i was in wyoming over the weekend, families balance their budget, our state has to balance the budget every year. we should have a constitutional amendment to balance the budget of the united states because we have a $60 trillion debt, you can stay as strong and independent nation if you continue to have that kind of debt to another nation, specifically the amount of money we are borrowing from china, we have to get our financial house in order and i think elections are over, people ought to put away the talking points in time for the president to actually lead, offer proposals that come up with a real solution that addresses the long-term problems that we're facing with medicare, social security, those are the two tidal waves coming at us when he says do the arithmetic, that is where the big numbers are, tracy. tracy: agreed. somebody has to give somewhere.

where are you willing to give a little as far as tax reform goes because we're not going to see a new internal revenue code before the end of the year. we have to work with what we have. where can you budget little? >> we had a couple of dry runs the last couple of years. it is time for people to come together and do the major solving of the problem, which is deal with entitlements, deal with medicare and look at this health care law, that should be on the table as well. the amount of money that will be put forward in terms of people with incomes up to $90,000. this country cannot afford that. tracy: quickly, i have 10 seconds, no you also sponsored a bill to get the keystone xl pipelines going again. where do we stand on that?

>> 18 of us, not republicans, nine democratnot democrats sento the president to approve the pipeline. it is jobs, energy security and additional tax revenue for the united states. tracy: certainly would help. senator john barrasso, thank you for taking the time. >> thank you, tracy. tracy: coming up, and major development in the fight to stop obamacare. how the supreme court kind of gave new life to a little-known legal challenge. we will talk about that next. and let's take a look at the winners and losers heading out to break. some winners on the s&p 500. no surprise on cyber monday, ebay is up 5%. best buy as well. we will be right back. what's next?

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tracy: we have to check on the markets as we do every 15 minutes. nicole petallides at new york stock exchange with john. urie here last week. it was a great week with the dow jones industrial average what do you make of that? >> it is just short-term profit. the european headline moves the markets. then there is more volatility. we have economic data as the weak moves on.

it is the end of the month. then use the more activity but it has spent not showing in of steam to get to the positive side. >> anything can happen but talk about going forward and do we trend higher with the sell-off? everybody is so worried of the fiscal cliff. >> historic we the market does rally but those handing over the market you will see a little more trading and positioning and maintenance before we head into the fiscal cliff. >> that is a great way to put it. you could not hope for the

big rally. tracy: we have a major development the supreme court revises the case that challenges the obamacare individual mandate. list macdonald is on the story. it is in the weeds? >> this is one of 20 cases but it is a significant move the supreme court says liberty university has the right to test drive the case to take it to the fourth court of appeals they say you have to listen to liberty university and that obamacare violates their religious freedom with the employer mandate requiring insurance coverage it is a violation of free speech and

freedom of association and other rates that are spelled out. we could see the appeals court here the case by next spring for credit is a huge and we see dozens of cases break out but the other move we see is companies are rejected. hobby lobby is biblically oriented they say we should not have to provide employees insurance coverage for the morning after pill or the iud. it is fascinating because the judge said in you are the for-profit secular organization you do not have the constitutional right for religious groups.

said david green said wait. that i built this company on the principles of the bible and now i am conflicted between following the laws of the country and maintain their religious beliefs that lead to hiring 13,000 people. tracy: he is not religious because that is the not-for-profit number? >> you are not a religious groups you are not exempt that has been given that a company does not qualify. tracy: because they could be more religious than others. >> $1.3 million of daily finds that they face of they don't comply. daily. we will track this for you.

coming up, record building finance the. who came out on top? double '07? the vampire? president lincoln? lookout the 10 and 20 year treasurys and the 30-year moves as well. we will be right back.gr which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens,

which isn't rocket science. it's just common sense, from td ameriade. >> i am robert gray. the fox business brief brief, obama's has nominated walter to replace mary schapiro who was set to step down next month after being that sec their major

overhaul. charlie gasparino first reported hurt eminent departure. the hedge fund manager accused of gauging the most lucrative insider-trading scheme never has been released and $5 million bail facing a charges for allegedly obtaining confidential information of a clinical trial for the alzheimer's drug from the university of michigan neurology professor. nasdaq the only major average in the green. dow jones industrial average below 13,000.

tracy: oil closes down $0.54, all loss of more than half of 1%.

with a two day streak of gains. it was thanksgiving weekend. it was a record for hollywood with the strong showing of "twilight" breaking don part to an sky9 fall. it the previous records and dennis nail covers the story. >> and a vampire and a secret agent and the dead president with a new president -- breaking a new record. $30 million more than set in 2009. in the fifth and final entry to the serious took and 64 million fast-talking is up and now ii is up well past the $3 billion mark the

23rd film of the team's bonds series sky9 fall now taking an 800 million worldwide the highest box office ever and abraham lincoln comes in third place about a historical figure daniel day-lewis looking at his umpteenth and renomination. rise of the guardians from dreamworks reported 145 million to make but one of the worst openings ever for the entry works fell it features and it and the easter bunny would draw international stars. the stock is down 5% now

almost 6%. tracy: i cannot believe the santa is not considered the international star. i understand the easter bunny. after three consecutive weeks natural gas falls as well i don't know why anybody thought we would have a mild winter? >> that is the forecast today. we years seeing positive action with soybean oil and pitt but the rest is down because of the weather which get the natural-gas today charts news came out of the commodity whether group to have temperatures in the '50s and '60s in december

what happened to natural-gas? in the dumps. it was inching up we had reason to believe it would be colder but according to the weather service it will be warmer than they thought. heating oil also coming down because the weather forecast will not be quite as warm and i have to take you to the gasoline futures because the refinery in elizabeth new jersey is back on line then the price tends to come down. >> that is a lot anybody who

thinks we will have the mild winter? i already have my snow boots on. i am prepared. >> you are too skinny you do not have enough fat on your bonds. >> my stage manager is doing us know happy dance. crazy. it is time for stocks every 15 minutes with nicole petallides at new york stock exchange. you have been down tech names? >> to the technology happy dance. yahoo! has done well. facebook raises to the outperformance the higher price target is what today up 8%? research in motion with a

blackberry 10 getting positive comments and apple with the bite from citi group so that was a good one. also yahoo! i noted this morning was on the goldman sachs conviction by list. that is exactly what we are seeing. tech names are on the move. tracy: the early christmas gift. do your the clock ticking? the looming fiscal clough ticking away. 35 days away unless they can hammer out an agreement. will that put a damper on holiday shopping? look at the winners and losers.

e-bay was up but apple is up 3% even dell computer said. we will be right back. can i help you? i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spot? [ male announr ] break from the holiday stress. save on ground shipping at fedex office.

tracy: breaking news reuters reports after the huge write-down of the last quarter from hewlett-packard last week they said the company lied medium to the acquisition. meg whitman and former ceo

are named. you knew that was coming. there will be more but who knows? talking about retail stocks falling despite a strong black friday kickoff. it does not surprise me. a one hit wonder? >> would have been signed thanksgiving weekend is not all is indicative but there were some clear winners macy's did very well but the stock is down today. the answer it is sell the news up 25% this year but wal-mart opens its doors early this stock is up 17% but a lot of the stocks ran

up in anticipation of the weekend. tracy: then the coming down to the wire? >> of dade winner was abercrombie and fitch. parents were shopping it was called the clear winner higher units and it is a stock that needs a turnaround it has been down 9%. tracy: i cannot walk past that store. the cologne is so bad. good thing my children are still too young. it smells awful. the white house if is ramping of the public campaign to pressure republicans to raise taxes.

day and come ironclad you are here used to be with americans for tax reform. the notion middle-class will get her? they are not affected? it is crazy. >> the pain will be spread around the president campaigned raising taxes on the wealthy and he tries to get that through before the end of the year. that will take a leap of faith no republican has voted broad-based raises over 22 years that is why they tried to set up the two-step process to also reforming the spending equations. tracy: i agree. we're not talking about entitlement reform.

but most americans are resolve door coming to the notion taxes will go up. where should republicans give? >> many small businesses pay the individual tax rates when you raise it it stifles investment and for people getting hired. so they tried to limit rid -- deductions to get the tax rate increase and it seems rather complicated but they try to work with the president. tracy: maybe it is the million plus that see the change. with intent to reform we have not heard much lately. >> correct.

will we go over the cliff? some say the tax rate is the issue but then we have to figure in 10 of reform. this will be harder. one says don do that changes to social security there is a mixed message and the clock is ticking it will create greater anxiety of the market. tracy: of the 35-- until we fall. will they come to an agreement? >> it will be half way. i temporary extension, then a framework to raise taxes by 1.2 trillion and then entitlements 1.5 trillion but we will figure out the details between those

changes. they will come to an to an agreement before we go home for the holidays. tracy: allot of paperwork for the accountants. i love when you are here. thank you. liz claman is back to take us through the last hour of trading. pennsylvania relies on federal funding for its programs its governor will tell us what potential cuts mean for his budget next year. "countdown to the closing "countdown to the closing bell" is next. before copd...

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liz: good afternoon everybody. i'm liz claman. it is the last hour of trading. countdown to the closing bell, we're beginning right